Meaningful Investments Only: Sustainably Transforming Real Estate Portfolios

In the mid-2000s, the UN’s Environmental, Social and Corporate Governance (ESG) criteria, then still under the heading of “sustainability,” began to gain traction in the construction and real estate industry. What started as a method of certifying new builds, quickly evolved into a cornerstone of decision-making across the industry. Today, sustainability principles, transparency requirements, and social responsibility shape virtually every process – from breaking ground to day-to-day operations. The modern property must hit a sustainability trifecta: be environmentally efficient, financially rewarding, and socially valuable. 

The role of the asset manager has undergone a significant shift amid these developments. Beyond traditional commercial administration, nurturing relationships with current and prospective tenants has become increasingly crucial. Implementing ESG criteria demands deeper technical expertise. It also requires much closer coordination between owners, occupants, and other stakeholders. On top of this, the constant stream of regulatory changes creates an ever-evolving set of requirements to navigate.

We’ve examined how our company tackles these challenges by looking at one of our flagship properties, TOWER185, and placed its development within the broader context of ESG evolution in real estate.

Better Lighting Using Less Energy

At the time of construction, TOWER185 featured a standard mix of lighting technologies typical for its time, including fluorescent tubes and halogen fixtures. The common areas and corridors have permanent ceiling-mounted lighting, while office spaces were equipped with floor lamps. We’re now upgrading the light sources across all of the approximately 5,000 fixtures throughout the tower’s 50 floors, its six-storey base building, and its two basement levels. We’ve been working directly with the original lighting manufacturers to develop custom LED retrofits specifically for TOWER185’s existing fixtures. This approach allows us to keep all the installed lighting hardware and means we are only replacing the bulbs and their connections – eliminating the need to produce, deliver, and install entirely new fixtures or dispose of the existing ones.

For TOWER185’s occupants, this comprehensive retrofit will gradually reduce electricity consumption while simultaneously improving the quality of their spaces. The new lighting is not only more energy-efficient but also meets modern standards for light quality. The building’s major tenant, PwC, has embraced this initiative for their spaces as part of their own sustainability programme.

Looking ahead to the future development of TOWER185, we’re looking to update the certifications to complement those obtained during construction. All operational aspects of the tower will undergo scrutiny through DGNB certification for buildings in operation – a system focused on the concrete development, implementation, and monitoring of any measures taken. 

A space leased to an American company will receive its own “LEED for Interior Design and Construction” certificate for tenant fit-outs. This process will allow us to continue to apply and refine insights gained from nest185 and the Circularity Passport in practical applications.

Beyond housing our main tenant, PwC, TOWER185 has also become the headquarters for numerous other companies. We’re planning additional accessible event spaces and in-house dining options to help foster community and cross-company networking. This project once again demonstrates TOWER185’s versatility and adaptability.